UPDATE 1-Moly Mines gets $250 mln China fund for Australia mine

Moly Mines said it received a commitment letter from China Development Bank (CDB) for up to $US250 million for its Spinifex Ridge molybdenum/copper project in Western Australia, sending its shares up 10 per cent.

The company, which explores and develops base and precious metals, said the financing would be applied toward half of the planned $US466 million facility.

Moly Mines said in a statement its major shareholder Hanlong had advised it that a commitment letter for the other half of the planned facility was expected from the China Export and Import Bank after the Chinese New Year.

Shares of the Perth-based company were up nearly 7 per cent at $C1.22 on Monday morning on the Toronto Stock Exchange.